Glossary · Payment terms
Net 45
Net 45 means the full invoice amount is due within 45 days of the invoice date, with no early-payment discount.
Under net 45 terms the customer has 45 days from the invoice date to pay the full amount. An invoice dated 10 March is due on 24 April.
Net 45 often appears as a compromise between a supplier asking for 30 days and a buyer asking for 60, or as the standard term in a larger customer’s procurement process. Fifteen extra days across all your invoices is a permanent increase in the money your customers hold — roughly half a month of sales.
If you accept net 45, make the due date unmissable on the invoice and send a short check-in partway through the term. Longer terms give a missing PO or a wrong address more time to go unnoticed.
Example
A firm billing €40,000 a month moves its main client from net 30 to net 45. Once the change works through, about €20,000 more is tied up in receivables at any time.